City Council
Report
City Council Meeting: May 9, 2023
Agenda Item: 5.A
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To: Mayor and City Council
From: Joseph Cevetello, Chief Information Officer, Information Services Department Subject: Award Agreement with Konica Minolta Business Solutions for Managed Print Services
Recommended Action
Staff recommends that the City Council:
1. Adopt a finding of no possibility of significant effect on the environment pursuant to Section 15061(b)(3) (Common Sense Exemption) of the
California Environmental Quality Act (CEQA) Guidelines.
2. Authorize the City Manager to negotiate and execute an agreement with Konica Minolta Business Solutions for Managed Print Services (MPS) for the Information Services Department. This recommended award is made as an exception to the competitive bidding process pursuant to Section 2.24.250 (c) and is for a total amount not to exceed $1,105,000 over a five-year period.
Summary
In recent years, the City has made a concerted effort to modernize City systems and services and has implemented technologies to allow staff to work throughout the City campus. The City’s printing needs have shifted in response to these changes as staff print at multiple printers not only the one closest to their desk, and the amount and type of printing has transformed. The City’s current fleet of printers from a variety of vendors are both leased and owned and many have exceeded their life expectancy. This approach to City printing is inefficient and complicates support and management of printing technology.
A Managed Print Services (MPS) program would allow for the assessment, consolidation, and management of the City’s copier and printer needs, while ensuring 2 of 4
that the devices are serviced, maintained, and/or replaced by a vendor. This will minimize downtime, improve repair response, and ensure consistent technology and tools for staff at a lower annual cost than what the City pays currently. Staff recommends that Konica Minolta Business Solutions (Konica) be awarded a five-year contract not to exceed $1,105,000 to provide managed print services as an exception to the competitive process, pursuant to State of Colorado Solicitation #RFP-NP-18-001 (NASPO Value Point Master Agreement for Copies and Managed Print Services).
Discussion
The City currently has a fleet of approximately 290 printing devices from various vendors of which 150 are Konica devices. Of the total, approximately half are under a maintenance agreement. This means that 50% of our printing devices are not covered for repair costs. Given their age, the City is experiencing increased costs for repair that are not covered under any contract. In addition, the current printer fleet is spread across multiple purchase orders, which requires significant staff time to manage. The City currently spends approximately $240,000 annually on Ricoh and Konica printers excluding toner and paper. The City also has approximately 50 HP printers that are not currently supported. Over the next four years, the City plans to replace all non-Konica printers with Konica devices and centralize printing contracts and payments. This moves all devices under one comprehensive contract and includes maintenance and support for all City printers at a lower annual cost than what the City pays currently. In addition, the City will seek to reduce the number of printing devices based on actual printing requirements, potentially reducing the annual printing costs in future years (starting in Year 2 of this contract).
A MPS program would consolidate the City’s printer equipment, by implementing a strategy that best suits the City’s printing, scanning, and copying needs, creating a single enterprise agreement for the procurement, support, and management of all City printers. As part of their scope of services, Konica would evaluate existing printers and replace, maintain, or retire equipment. They will provide a plan to transition existing devices into this new comprehensive agreement. Under this contract, the City would be 3 of 4
consolidating all owned and leased printers (including HP and Ricoh) into the Konica fleet and replace all non-Konica devices within five years.
The proposed MPS project will also modernize the City’s printer management capabilities, support printing from mobile devices and allow for more detailed usage and cost reporting. MPS will also significantly improve service response time.
Funding for this contract over a 5-year period includes:
Year 1 - $195,000
Year 2- $208,000
Year 3- $221,000
Year 4- $234,000
Year 5- $247,000
Staff seeks approval to enter into an agreement with Konica as an exception to the competitive process.
Exception to Competitive Bidding
Staff recommends Konica Minolta Business Solutions to provide managed print services as an exception to competitive bidding per Municipal Code 2.24.250(c), as defined below. The State of Colorado conducted a competitive process in 2018 through NASPO Value Point, for copiers and managed print services (which resulted in Master Agreement No. 140597). Contract No. 140597 was awarded on August 2019 to Konica Minolta to provide Multi-function Devices (MFD’s), Single-function Printers, Production Equipment, Large/Wide Format Equipment, Scanners, and MPS and software bundles that enable and enhance the productivity and capability of the Devices. The City of Santa Monica will utilize this contract which offers the most competitive pricing for MPS services and best meets the City’s needs.
c. When Competitive procedures were followed by a governmental agency, including a federal, state, county, city, joint powers agency, special district, or cooperative purchasing agency consisting of one or more such agencies, that are equivalent to the procedures set forth in this Chapter, and the goods or services are supplied to the City at the same or better price as the price obtained by that agency.
Environmental Review
The award agreement is categorically exempt from CEQA pursuant to Section 15061(b)(3) of the CEQA Guidelines. The award agreement is covered by the commonsense exemption which states that CEQA does not apply, “where it can be seen with certainty that there is no possibility that the activity in question may have a 4 of 4
significant effect on the environment.” The agreement will provide the City with managed printing services. Therefore, it can be seen with certainty that the proposed agreement would not result in adverse physical impacts on the environment, and as such, is categorically exempt from CEQA.
Financial Impacts and Budget Actions
Staff seeks authority to approve funding from the Information Technology Replacement and Services Fund to award an agreement with Konica Minolta Business Solutions for managed print services. Funds for this purchase are available in the FY 2022-23 Capital Budget. Various funds will reimburse the Information Technology Replacement and Services Fund based on actual expenditures. Printing software included in this contract will allow the City to document actual usage for billing by Department/Division.
Contract Request
FY 2022-23
Budget
Request Amount
Future Budget Requests Department/CIP Account #
Total Contract
Amount
$195,000 $910,000 C7100030.689000 $1,105,000
Prepared By: Margaret Talamantes, Administrative Services Officer Approved Forwarded to Council
Attachments:
A. Oaks Konica Minolta 2023